Britain won its first big Iraqi rebuilding contract yesterday as a $500-million project to help restore power supplies was handed to a joint venture 49% owned by engineering group Amec.
Shares in the group rose 14,5p to 290,5p after the Pentagon confirmed that it had handed the contract to FluorAmec.
It is the second time that FluorAmec has won work in Iraq but the previous deal, worth only about $150-million, was only as a subcontractor.
Amec joined with Fluor in the aftermath of the war last year in a bid to win a share of the multi-billion dollar contracts for reconstruction work, but all of the early big prime contracts awarded went to American firms. The British government has been lobbying Washington to give UK firms a fair share of the contracts and the rules for the award of projects have now been changed.
Chief executive Sir Peter Mason said: ”We are delighted to confirm we have won our first big contract in Iraq.” But he warned against making projections based on the new work due to ”the uncertain environment in Iraq”, which could mean delays.
Patricia Hewitt, the trade and industry secretary, said: ”I am very pleased that British expertise will play a major role in in these projects to bring power and water to the Iraqi people.”
FluorAmec has tendered for six other contracts worth $3,50-billion and hopes to pick up projects worth another $1-bllion. The contracts will be awarded in the next two or three weeks. – Guardian Unlimited Â